sell

How to buy and sell raw land step by step

buddy it's Michael Walter here from the

layin flippin formula.com covering some

Q&A the head came in all about the land

investing business and Perry had asked

if I could do a step-by-step breakdown

of how to find a property how to buy the

property how to flip the property and do

the contract both first seller financing

and on a cash flip so in this video

we're gonna do a seller financing

scenario how we would do all this and

then I'll do a follow-up video about how

to do the cash flip basically the same

exact steps just the contract and

approach is slightly different so first

things first let's and I'm gonna fire

right through this here so stick with me

but let's say you have been studying

Kern County California and you know what

properties are getting listed for and

what they're getting sold for so in the

middle of the desert on the middle of

nowhere these properties are being sold

for about three thousand dollars for two

and a half acres so you know that's

where your numbers are at on your whole

tail retail pricing so we need to find

some property cheaper than thirty two

hundred bucks

the three thousand dollars so we can go

ahead and make a profit on it so

basically what I like to do is reach out

to other wholesalers in the industry the

big hitters that do large mailings and

then I will purchase their properties at

a discount and I'll turn around and sell

our financing so I'm on land pin now we

found one deal as a comparison just for

this video here on land which like the

land watch now I'm on land pin and you

can see right here we've got 2.1 acres

in Kern County for $650 so let's dive in

a little bit deeper and see what is

attached to this property here so $650

for 2.1 acres Kern County California we

have all the great information about

Kern County this is a desert property as

well so it is comparable to the other

one in my opinion there is back taxes

owed on this so this is six hundred and

fifty dollar property is actually a

thousand dollar property we're still

ahead of the game at $1000 on this and

you could always make offers to these

wholesalers as well taxes annually after

you clean up that four hundred dollar

mess is $27 a year that's great for

marketing there's no dock fee I love

that I hate

with Doc fees it's just me so find a

property that is a thousand dollars all

in let's say we don't even make a

counteroffer on this we buy this for a

thousand bucks

we know the hotel retail price is three

thousand dollars but let's say we don't

even have money to market this we take

our thousand dollars we buy this we

clean up the taxes and I could actually

show a couple even deeper strategies on

how to profit but let's say we have a

thousand bucks to our name we buy the

property we clean up the taxes now we

have a deal that's worth three thousand

dollars that we're all in for a thousand

bucks so how do we unload this thing

next we're gonna go to sites like

Craigslist Facebook YouTube Twitter

Instagram anywhere we can promote for

free and we are gonna blast this thing

everywhere just posting ads and just

because it's in current County in

California doesn't mean we are only

marketing in California you can mark it

in Cleveland you can mark it in Florida

you can market this in Texas people buy

land anywhere it's not it doesn't have

to be in their backyard so and that's

what's great about Lane you're not

marketing to somebody that lives there

you're marketing to somebody that wants

to own property there so you're gonna

blast this property on all the free

platforms just assuming you don't have

any money to do pay-per-click or land

watch or land and farm or any of those

other sites and some hungry buyer is

gonna call you and say hey I saw that

property on there now in this case we

are gonna list it as a seller finance

deal let's say we just keep things

simple we're gonna do a hundred dollars

down fifty dollars a month for 48 months

so every year you're gonna get six

hundred dollars back on this property so

it's gonna take you two years to become

profitable but the return is gonna be

insane on this so one hundred dollars

down fifty dollars a month like I said

I'm doing that just as simple math and

as a fast sale and to get things done

now someone's gonna reach out to you and

say I love the property I want to buy

how do you get your money well you're

not supposed to use PayPal just as a

heads up PayPal doesn't like real estate

deals but a lot of people do that you

could do snail mail I don't like that

that would be my absolute last resort

there you could set up an account with

moon Clark through stripe a lot of

people use that you can wire the money

to your account there's a number of

different ways you could Western Union

the deposit

over the case maybe we're talking about

a hundred and fifty dollars for the

buyer to get into this particular seller

finance deal so whatever you do to get

your money once you have a deposit don't

waste your time until you have a deposit

you're gonna go ahead and fill out your

purchase agreement so this is a seller

finance agreement and always always have

your contracts reviewed by an attorney

to make sure they are legal in your area

this is just for entertainment purposes

only so on this particular seller

finance contract template here for the

description row put two point nine acres

current County California legal

description whatever the legal

description was for the property we're

gonna go ahead and put that there and

then the parcel number goes right here

you could also add GPS coordinates if

you want to I personally don't but if

you want to have that on file as well

that's kind of a cool perk so keep that

in mind next refresh you're going right

here you go put hundred dollars down

fifty dollars a month for 48 months

payment schedule let's say we received

the payment today it's the sixteenth I

believe so we're say down payment plus

first payment was received on one 1619

down here you put next payment is due to

1619 and will be paid monthly until such

time as all payments have been satisfied

prepayment buyer can prepay at any time

without penalties at any time someone

wants to throw you some more money ahead

of the game and you can put that to work

again absolutely take it don't kind of

Lies them for that that's crazy

like I said this one here Pay Pal is

listed but PayPal does not like you

doing that so avoid it moon clerk is a

great follow-up option for that next for

late fees buyer Greece big make the

payment no later than the 16th of every

month with the understanding that the

late fee of $25 will be added to the

monthly payment if said payment is not

received by me personally I give five

days and then in all reality if you've

done business with you you know I don't

even miss Rawnsley fees but that's just

mean it's good to have it in a contract

a couple your but anyway but after five

days you do have the right to slap them

with a $25.00 late fee that's fine but I

said me personally I don't sweat it I'm

pretty laid-back about stuff this is

where you as the seller would need to

initial the page this is where your

buyer is going to initial the page

next if buyer falls behind more than now

what I do here most people in the

industry gives 60 days so 60 days would

be $100 in this scenario I would put 150

I give 90 days to all my buyers just to

keep things I like to give people a fair

shake you know stuff happens in life

people fall behind they don't want to

lose their property they just need a

little buffer so I give 90 days and then

in here it also says that you know this

can include late fees and all that once

again I don't penalize people for that

but have it in your contract to cover

your butt so if you were doing this deal

with me it would say 150 in here and

that means after 90 days if you don't

respond you don't make out a plan come

current I take the property back and I

resell it upon final payment when entire

purchase price and any other fees have

been paid in full seller will transfer

transfer the proper method of that

property special warranty deed and

actually you can edit this if you buy on

a quitclaim deed you want to change that

to quick claim deed if you buy a

warranty deed you want to put warranty

deed however you buy the property is how

you're gonna flip it to the new buyer

insurance you have that clause in there

for sure now for taxes in this

particular scenario we hypothetically

paid the Texas current so you would just

say buyer would be responsible for

property taxes for 2019 and beyond now

you may know that we flip some text the

Linkwood properties that will sell are

financed and we just put in here all

texas current back and forward so that

way we cover our but they know they have

to pay all the taxes on the property but

in this scenario you would just put 2019

and a beyond once you bla bla bla

due diligence type stuff seller this is

where you would initial here by our

initials here by the way I'm using

DocuSign right here it is a great tool

that you can use that way when I'm

traveling I don't have scanners and

things like that so I can just pull this

template and I fill in all the blanks

through DocuSign I think I pay like 300

dollars a year for DocuSign but it helps

keep me super organized because I'm a

totally disorganized dude so keep that

in mind it's well worth the investment

to keep yourself on track now this is

all the information that your buyer has

to fill out here

you can contact them everything's good

here's your information that you sign

off on this as well you date it and

everything's on the up-and-up boom

everything is good to go you collect

your money every 30 days and that is how

you do a simple seller finance flip now

I'm sure there's gonna be tons of

questions because I ran right through

this with the quickness if you have

questions please comment below this

video I will create follow-up videos

answering each one of your questions if

you are interested in going into the

land investing business go ahead and

check out the land flipping formula.com

links will be below the video and if you

want great wholesale deals properties as

low as $25 a month check out Raleigh and

investments com a link will be below the

video as well for that thank you so much

for tuning in and I'll see you on the

next video